Planning for retirement involves identifying risks that could harm financial security. However, a report from the Alliance for Lifetime Income shows a disconnect between Americans and financial advisors on key risks. While consumers fear inflation, advisors focus on outliving savings and market volatility as top concerns. Both perspectives are valid, but long-term planning is crucial.

Consumers feel inflation’s impact directly, making it their top worry. Advisors, on the other hand, prioritize risks that can derail a retirement plan over decades, such as longevity and market volatility. Balancing both perspectives is essential for a successful retirement plan, addressing both immediate concerns and long-term risks.

To address inflation, retirement plans should consider annual spending increases, withdrawal adjustments based on inflation, and relying on inflation-adjusted income sources like Social Security and annuities. Preventing outliving savings involves balancing income, spending, managing risks, and ensuring enough protected lifetime income to cover essential expenses. An annuity could be a valuable tool in retirement planning.

Read more at Yahoo Finance: Inflation Tops Retirement Worries for Americans, but Financial Advisors Disagree